Call-In Number: 1-866-618-6746 and Access Code: 6060145

CHARGE Conference Call

January 7, 2010

Call-in number: 1-866-618-6746 and Access Code: 6060145

List of Topics for Discussion

1.  Gross Receipts Tax (GRT)

Does the GRT need to be included in the Price to Compare (PTC)?

·  OCA has asked that EGSs include GRT in PTC for residential offers on website

·  Question has arisen as to whether GRT should be included in PTC for all purposes, including marketing materials and offers made to consumers

·  OCMO has indicated that to permit an apples-to-apples comparisons, all marketing materials and offers should include GRT – per 52 Pa. Code §54.182, PTC includes all unbundled generation and transmission related charges

·  In reviewing residential disclosure statements, BCS recommends to EGSs that they include language along the lines of: “This price includes Transmission Charges and Estimated Total State Taxes, but excludes applicable Sales Taxes”

·  Question has arisen as to whether GRT should be included in PTC for all purposes regardless of customer class, i.e., residential, commercial or industrial – 54.182 does not differentiate between different customer classes

How is it calculated?

·  GRT is 5.9% and according to PPL’s website, it is applied as follows: Price = (Taxable Amount)/(1-GRT)

·  At least one EGS may be calculating it by multiplying the kwh rate times the tax rate (1.059)

·  Do calculation methodologies need to be consistent or is it sufficient that an EGS includes in the PTC the amount it is recovering for GRT from customers?

How is GRT shown on the bill?

·  Questions have arisen about how GRT is shown on bill

·  Per 52 Pa. Code §56.15(4), residential bills should indicate that a GRT is being charged and include a reasonable estimate of the charge

·  How is GRT shown on commercial and industrial customers’ bills?

Do EGSs have any other tax responsibilities?

·  Question has arisen about EGS’ obligation to pay other taxes, such as capital stock and franchise, corporate net income or PA utility realty tax

2.  Price to Compare

·  Questions have arisen as to whether EGS websites show any administrative fees being imposed on customers as part of their PTC

3.  CHARGE and Retail Market Working Group Roles

·  What is each group’s role, and how does a participant know where to raise an issue?

·  CHARGE: quick informal resolution and sharing of information to ease the process for consumers to navigate the market, electric generation suppliers to enter and participate in the market, and default service providers to receive what they need to make timely switches , and to enhance the ability of the PUC, EGSs and DSPs to respond to consumer inquiries

·  Retail Market Working Group: address longer term issues that will promote the development of a competitive market

·  Participants need not be concerned with where to raise an issue since CHARGE and RMWG are communicating and coordinating

·  May be possible to merge at a later time when short-term issues are not so pressing

4.  Third Party Marketing Services Providers

·  Reminder about EGS responsibility for actions of third parties providing marketing and sales support services, i.e. door-to-door sales and telemarketing, 52 Pa. Code §54.43

5.  EGS Call Centers

·  Consumers have indicated that they have not been able to reach EGSs due to heavy call volumes

·  Are any efforts being made at least temporarily to allocate additional resources to call centers?

6.  Low-Income Customers

·  Are recipients of low income subsidies in PPL eligible to shop and still receive the subsidies?

·  Answer may depend on whether EGS is participating in PPL’s Purchase of Receivables Program

7.  Budget Billing

·  Some customers on budget billing have been told that they will lose that arrangement if they switch to an EGS

·  Need to confirm that customers can keep budget billing option while purchasing from EGS

8.  Migration Statistics

·  OCA currently posts migration statistics on a quarterly basis

·  Suggestion has been made to have migration statistics available on a monthly basis

9.  814 Enrollment Transaction

·  Question has arisen as to the appropriate date to be included on the electronic enrollment transaction

·  PPL indicates that contract date should be used rather than the date when the enrollment transaction was sent

·  Use of contract date ensures that customer who chooses multiple EGSs in a single period is switched to the last EGS they chose

·  Use of date when enrollment transaction is sent can lead to EGSs holding enrollments and can result in slamming if customer is switched to the wrong EGS

10.  Rescission and Confirmation Periods

·  Consumers have a 3-day rescission period have after receiving the disclosure statement from the EGS, per 52 Pa. Code 54.5(d)

·  EDCs give consumers 10-days in the confirmation letter sent under 57.173(2) to indicate if that is an error or they did not authorize the change

·  Care should be taken to have consistent references to the 3-day rescission period and 10-day confirmation period

·  Question has been raised about whether these periods apply to commercial and industrial customers as well as residential customers – regulations do not seem to differentiate between customer classes